Adviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh has approved the fund of Rs 20 billion to be managed by NIT, State Life and banks to provide the liquidity.
Government of Pakistan will launch the fund on May 20.
Earlier a delegation of leading Businessmen and Brokers comprising of Bashir Jan Mohammad, Arif Habib, Aqeel Karim Dhedhi, Ali Jamil and Chairman PSX Sulaiman Mehdi met the Finance Advisor Dr. Abdul Hafeez Sheikh along with Chairman FBR Syed Shabbar Zaidi and Spokesperson for MoF Khaqan Najeeb in Karachi to discuss the overall macro-economic situation of the country and its impact on the Capital Markets.
Under the present depressed market sentiment’s where shares prices have nosed dived, the delegation suggested that the proposed draft of Listed Companies (Buy Back of Shares) Regulations, 2019, be approved on priority and the limit of 10% on treasury shares should be enhanced.
The delegation also proposed to resolve the present issue of ready futures transaction at PSX which is also hurting the market volumes.
It was also recommended that keeping in view the attractive valuations at the PSX, the NIT State Enterprise Fund which was created in 2009 for market support should be reactivated on the same lines. Since the Fund still exists, it would not take long to be activated.
The Finance Minister took note of all the suggestions very positively and assured the delegation of his full support and cooperation.
Various other matters relating to Market development were also discussed and all were taken positively.